Note 5 - Other Revenues

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Other Revenues [Text Block]

Note 5 – Other Revenues

Other revenues are outlined in the table below. Revenues from rental income include health care real estate properties owned by us and leased to third party operators. Revenues from management and accounting services include fees provided to manage and provide accounting services to other healthcare operators. Revenues from insurance services include premiums for workers’ compensation and professional liability insurance policies that our wholly–owned insurance subsidiaries have written for certain healthcare operators to which we provide management or accounting services. "Other" revenues include miscellaneous health care related earnings.

	Three Months Ended September 30				Nine Months Ended September 30
(in thousands)	2020		2019		2020		2019
Rental income	$	5,646	$	5,678	$	16,972	$	16,963
Management and accounting services fees		4,052		4,520		12,651		13,567
Insurance services		1,294		1,528		4,074		4,667
Other		119		251		766		841
Total other revenues	$	11,111	$	11,977	$	34,463	$	36,038

Rental Income

The Company leases real estate assets consisting of skilled nursing facilities and assisted living facilities to third party operators. Additionally, we sublease four Florida skilled nursing facilities included in our lease from National Health Investors (“NHI”) as noted in Note 8 – Long Term Leases. Rental income reflected in the interim condensed consolidated statements of operations consisted of the following:

	Three Months Ended September 30				Nine Months Ended September 30
(in thousands)	2020		2019		2020		2019
Operating lease payments	$	5,505	$	5,482	$	16,514	$	16,450
Variable lease payments		141		196		458		513
Total rental income	$	5,646	$	5,678	$	16,972	$	16,963

 Management Fees from National

We manage five skilled nursing facilities owned by National. For the three and nine months ended September 30, 2020, we recognized management fees and interest on management fees of $920,000 and $3,399,000 from these centers, respectively. For the three months and nine months ended September 30, 2019, we recognized management fees and interest on management fees of $1,543,000 and $4,748,000 for these centers, respectively.

Insurance Services

For workers’ compensation insurance services, the premium revenues reflected in the interim condensed consolidated statements of operations for the three months and nine months ended September 30, 2020 were $779,000 and $2,441,000, respectively. For the three and nine months ended September 30, 2019, the workers’ compensation premium revenues reflected in the interim condensed consolidated statements of operations were $866,000 and $2,656,000. Associated losses and expenses are reflected in the interim condensed consolidated statements of operations as "Salaries, wages and benefits."

For professional liability insurance services, the premium revenues reflected in the interim condensed consolidated statements of operations for the three months and nine months ended September 30, 2020 were $515,000 and $1,633,000, respectively. For professional liability insurance services, the premium revenues reflected in the interim condensed consolidated statements of operations for the three months and nine months ended September 30, 2019 were $662,000 and $2,011,000, respectively. Associated losses and expenses including those for self–insurance are included in the interim condensed consolidated statements of operations as "Other operating costs and expenses".